The following accounts were taken from the trial balance of Cristy Company as of December 31, 2002.

Given the information below, make the necessary adjusting entries.

(a) The equipment has an estimated useful life of 9 years and a salvage value of \($1,000\).
Depreciation is calculated using the straight-line method.

(b) Ending inventory is \($28,000.\) Purchases for the year totaled \($120,000.\) The adjusting method for inventory is used.

(c) \($2,500\) of selling expense has been paid in advance.

(d) Interest of \($750\) has accrued on notes receivable.

(e) \($620\) of advertising expense was incorrectly debited to selling expense.

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Sales $90,000 Interest Revenue 5,000 Equipment 46,000 Accumulated Depreciation-Equipment 12,000 Beginning Inventory $20,000 Advertising Expense 2,000 Selling Expense 6,000 Interest Expense 1,000